Roblox's Discovery Engine Will Face 'Real Test' With AI-Made Games, Wedbush Says
MT Newswires Live
Jul 17
Roblox (RBLX) will face a "real test" whether its discovery engine, built to reward retention, holds up once artificial intelligence-made games flood the platform, Wedbush said in a Friday note.
Wedbush mentioned the declining weekly concurrent and daily active users growth rates and said that the week-over-week move was not especially meaningful on its own. However, the incremental decline reflects tougher year-ago comparisons rather than fresh deterioration in underlying usage.
The note also said Roblox's newly launched AI tool Build could serve as a supply-side growth lever, which allows creators to build more experiences and faster.
Wedbush set a price target on Roblox of $65, with an outperform rating.
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